Deck 2: Being Ethical and Socially Responsible
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Deck 2: Being Ethical and Socially Responsible
1
Why did Congress create the Equal Employment Opportunity Commission?
Answer not provided.
2
Define the doctrine of caveat emptor.
Answer not provided.
3
What is an affirmative action program? Be certain to detail the objectives of such programs in your answer.
Answer not provided.
4
What are the three major sets of factors believed to affect ethical behavior in an organization?
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5
How can the government encourage ethical behavior? Give an example.
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6
Define business ethics.
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7
How does the economic model of social responsibility differ from the socioeconomic model of social responsibility?
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8
Define consumerism.
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9
How can organizations encourage ethical behavior?
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10
Why are fairness and honesty in business important ethical concerns? Give examples.
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11
What are the major ethical issues businesspeople face?
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12
What would opponents of the socioeconomic model argue to support their position?
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13
What are the three major consumerism forces today?
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14
Explain the six basic rights of consumers.
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15
What are some guidelines for making ethical decisions?
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16
Describe the four types of pollution.Who should pay for a clean environment?
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17
Why is pollution of concern to most citizens? Why are some businesspeople particularly concerned about pollution?
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18
What would proponents of the socioeconomic model argue to support their position?
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19
Define a code of ethics.Do codes cover every business situation?
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20
What are the two views of social responsibility? Explain.
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21
The Jackson Springs Coal Mine recently discovered that the mine was contaminating the local drinking water.Cleaning up the mine and the surrounding areas would probably bankrupt the mine, causing the loss of hundreds of local jobs, but doing nothing would endanger the health of the community.The mine faces a serious ____ decision.
A) business
B) ethical
C) environmental
D) social responsibility
E) cost
A) business
B) ethical
C) environmental
D) social responsibility
E) cost
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22
Investors expect management to do all of the following except
A) consult them on ethical decisions.
B) increase sales.
C) boost the company's profit.
D) increase the return to the investor.
E) make sensible financial decisions.
A) consult them on ethical decisions.
B) increase sales.
C) boost the company's profit.
D) increase the return to the investor.
E) make sensible financial decisions.
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23
What are the four steps in developing a program of social responsibility?
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24
The study of the morality of choices made by people is known as _____.
A) ethics
B) business ethics
C) freedom of choice
D) moral aptitude
E) standard of behavior
A) ethics
B) business ethics
C) freedom of choice
D) moral aptitude
E) standard of behavior
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25
Excellent Air Incorporated (EAI)
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.Initially, employees were not willing to go to EAI management with ethical issues, but would instead report them to the press.This is an example of _____.
A) whistle-blowing
B) a social audit
C) poor employees
D) opportunity emptor
E) a narc
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.Initially, employees were not willing to go to EAI management with ethical issues, but would instead report them to the press.This is an example of _____.
A) whistle-blowing
B) a social audit
C) poor employees
D) opportunity emptor
E) a narc
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26
Customers expect a firm's products to
A) boost sales.
B) be profitable.
C) earn a reasonable return on investment.
D) be available everywhere.
E) be safe, reliable, and reasonably priced.
A) boost sales.
B) be profitable.
C) earn a reasonable return on investment.
D) be available everywhere.
E) be safe, reliable, and reasonably priced.
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27
What sort of information should be included in a social audit? Who would prepare the audit? How would such a document be used?
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28
XYZ Coffee
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.Which basic consumer right was infringed when Nancy bought the espresso machine?
A) the right to safety
B) the right to be heard
C) the right to service
D) the right to respect
E) the right to choose
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.Which basic consumer right was infringed when Nancy bought the espresso machine?
A) the right to safety
B) the right to be heard
C) the right to service
D) the right to respect
E) the right to choose
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29
Excellent Air Incorporated (EAI)
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.EAI's creation of its code of conduct demonstrated its application of moral standards to business situations, which is also known as _____.
A) moral responsibility
B) social consciousness
C) social responsibility
D) moral consciousness
E) business ethics
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.EAI's creation of its code of conduct demonstrated its application of moral standards to business situations, which is also known as _____.
A) moral responsibility
B) social consciousness
C) social responsibility
D) moral consciousness
E) business ethics
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30
XYZ Coffee
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.Nancy's right to product options in buying an espresso machine is known as _____.
A) caveat emptor
B) consumerism
C) affirmative action
D) social audit
E) business ethics
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.Nancy's right to product options in buying an espresso machine is known as _____.
A) caveat emptor
B) consumerism
C) affirmative action
D) social audit
E) business ethics
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31
Excellent Air Incorporated (EAI)
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.To fix the ethical issue problems, EAI management should have implemented all of the following guidelines for making ethical decisions except which one?
A) Listen and learn.
B) Identify the ethical issue.
C) Create and analyze options.
D) Create an industry benchmark.
E) Explain your decision and resolve any differences that arise.
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.To fix the ethical issue problems, EAI management should have implemented all of the following guidelines for making ethical decisions except which one?
A) Listen and learn.
B) Identify the ethical issue.
C) Create and analyze options.
D) Create an industry benchmark.
E) Explain your decision and resolve any differences that arise.
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32
Excellent Air Incorporated (EAI)
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.Since the company created its code of conduct, employees have limited ____ or amount of freedom to perform an unethical act.
A) time
B) responsibility
C) moral dilemmas
D) unethical options
E) opportunity
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.Since the company created its code of conduct, employees have limited ____ or amount of freedom to perform an unethical act.
A) time
B) responsibility
C) moral dilemmas
D) unethical options
E) opportunity
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33
Which of the following holds true in the case of business ethics?
A) It is laws and regulations that govern business.
B) It is the application of moral standards to business situations.
C) It does not vary from one person to another.
D) It is most important for advertising agencies.
E) They are well-defined rules for appropriate business behavior.
A) It is laws and regulations that govern business.
B) It is the application of moral standards to business situations.
C) It does not vary from one person to another.
D) It is most important for advertising agencies.
E) They are well-defined rules for appropriate business behavior.
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34
Excellent Air Incorporated (EAI)
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.The principles that EAI chooses to pride itself on show that the company has _____.
A) a moral minority
B) cultural diversity
C) social responsibility
D) caveat emptor
E) a social audit
Excellent Air Inc.is a well-known establishment in the airline business.It is currently one of the top firms in the industry.The company prides itself on good customer service and being concerned with the broader societal good.EAI management is not only concerned with doing things right, but also with doing the right things.Many of their decisions reflect this philosophy.Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management.As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues.EAI also developed a code of conduct based on standards that continue to be upheld within the company.Since the code of conduct has been put in place, there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover.The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits.If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.
Refer to Excellent Air Incorporated.The principles that EAI chooses to pride itself on show that the company has _____.
A) a moral minority
B) cultural diversity
C) social responsibility
D) caveat emptor
E) a social audit
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35
XYZ Coffee
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.Nancy is a(n) ____ within her community.
A) outcast
B) active member
C) minority
D) bad influence
E) unethical person
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.Nancy is a(n) ____ within her community.
A) outcast
B) active member
C) minority
D) bad influence
E) unethical person
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36
Brant promised to repair Carolyn's car on Thursday.After picking up the necessary part at a junkyard, he discovered he could not do the job after all and that the junkyard would not buy back the part.Carolyn does not know about these developments.However, she thinks Brant will be finished with her car sometime today.What should Brant do?
A) try to repair the car even though he does not really know how
B) try to repair the car so he can at least get his money's worth out of it
C) call Carolyn to inform her of the problem, and recommend a reputable repair shop
D) fake an emergency and contact Carolyn on Monday
E) stall for time to read up on car repairs so he can practice on Carolyn's car
A) try to repair the car even though he does not really know how
B) try to repair the car so he can at least get his money's worth out of it
C) call Carolyn to inform her of the problem, and recommend a reputable repair shop
D) fake an emergency and contact Carolyn on Monday
E) stall for time to read up on car repairs so he can practice on Carolyn's car
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37
How should social responsibility programs be funded? Explain your answer.
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38
Tony Shinn is applying for a mortgage to purchase his first home.His credit rating is mediocre due to several late payments on his credit cards and car loan.He is upset because his friend Jerry was offered an interest rate 3 percent less than what Tony was offered by the same mortgage company.This mortgage company's actions were
A) unethical-both Tony and Jerry should have been charged the same interest rates, regardless of their credit histories.
B) ethical-this is just a part of doing business because credit history is an important indicator of future payments.
C) illegal-subjective factors may not be used when determining which credit offers may be extended to certain customers.
D) unethical if Tony is a minority and Jerry is not.
E) unethical and illegal-customers must all be treated the same.
A) unethical-both Tony and Jerry should have been charged the same interest rates, regardless of their credit histories.
B) ethical-this is just a part of doing business because credit history is an important indicator of future payments.
C) illegal-subjective factors may not be used when determining which credit offers may be extended to certain customers.
D) unethical if Tony is a minority and Jerry is not.
E) unethical and illegal-customers must all be treated the same.
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39
XYZ Coffee
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.Before he got his job, another description for the employee who was hired over Nancy would be _____.
A) an unemployed
B) a minority
C) a whistle-blower
D) a caveat emptor
E) a consumerist
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.Before he got his job, another description for the employee who was hired over Nancy would be _____.
A) an unemployed
B) a minority
C) a whistle-blower
D) a caveat emptor
E) a consumerist
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40
XYZ Coffee
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.If Nancy were Caucasian and the company employees were mostly Hispanic, the way she was treated would be referred to as _____.
A) affirmative action
B) legal discrimination
C) simply unethical
D) reverse discrimination
E) a perfect match
Nancy is a highly respected person within her community.She is Hispanic in a largely Caucasian-populated area.Since Nancy was looking for a new job, she went to a new company in the area called XYZ Coffee, where she applied for a position.After the interview, Nancy felt confident that she would be hired because of her qualifications.However, she did not get a call back.Initially, Nancy did not think twice about it, but she felt differently when she visited the same coffee store later to purchase something for a friend.The company had hired an inexperienced Caucasian male with a history of unemployment.At this point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine.The employee informed Nancy where the machine was located and retrieved it for her.Nancy asked if there were any other espresso machines of higher quality.When the associate said no, Nancy purchased the item and left.After she gave the gift to her friend, she noticed a much better quality espresso machine that someone else had given her.Nancy asked where they had purchased it, and they responded, "XYZ Coffee."
Refer to XYZ Coffee.If Nancy were Caucasian and the company employees were mostly Hispanic, the way she was treated would be referred to as _____.
A) affirmative action
B) legal discrimination
C) simply unethical
D) reverse discrimination
E) a perfect match
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41
You are the decision maker for purchasing office equipment in your organization.One sales representative privately offers you season tickets to the Chicago Bears if you help him out.This tactic is _____.
A) a corporate discount
B) a common business practice
C) a bribe
D) personal selling
E) ethical
A) a corporate discount
B) a common business practice
C) a bribe
D) personal selling
E) ethical
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42
Which specific area of business communications presents ethical questions by sometimes containing false and misleading messages for adults and especially children?
A) press releases
B) newspaper articles
C) Consumer Reports' rankings
D) advertising
E) audited financial reports
A) press releases
B) newspaper articles
C) Consumer Reports' rankings
D) advertising
E) audited financial reports
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43
What are the three sets of factors that influence the standards of behavior in an organization?
A) organizational norms, circumstances, morals
B) peer pressure, attitudes, social factors
C) historical factors, management attitudes, opportunity
D) opportunity, individual factors, social factors
E) financial factors, opportunity, morals
A) organizational norms, circumstances, morals
B) peer pressure, attitudes, social factors
C) historical factors, management attitudes, opportunity
D) opportunity, individual factors, social factors
E) financial factors, opportunity, morals
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44
You are the executive vice president for Cooper Tire, the sixth largest U.S.tire maker.You have the responsibility to locate land for a new distribution center in Mississippi, and you own over 1,000 acres of land near one site in Tupelo.Your situation could create
A) a code of ethics.
B) the usual decision-making problems of cost versus benefit to Cooper Tire.
C) a wonderful, ethical opportunity to make a lot of money.
D) an ethical opportunity to move the distribution center to your hometown.
E) a conflict of interest.
A) a code of ethics.
B) the usual decision-making problems of cost versus benefit to Cooper Tire.
C) a wonderful, ethical opportunity to make a lot of money.
D) an ethical opportunity to move the distribution center to your hometown.
E) a conflict of interest.
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45
Metabo-Miracle offers a guaranteed weight loss of 10 pounds in one week without dieting or exercise.Thousands of customers purchase the products and about 200 call in with complaints that the product was ineffective.What action should Metabo-Miracle take?
A) It should immediately remove its products from the market, fully refund the thousands of customers' money, and close its business.
B) It should use persuasive techniques to get the 200 disappointed customers to try the product again each time it fails in order to decrease refunds.
C) It should explain to the customers that they misused the product and try to sell them more of the product.
D) It should discuss the product failure with the customers and then provide them with a full refund of their purchase price.
E) It should ignore the customers' complaints and hope they will tire of calling and writing letters.
A) It should immediately remove its products from the market, fully refund the thousands of customers' money, and close its business.
B) It should use persuasive techniques to get the 200 disappointed customers to try the product again each time it fails in order to decrease refunds.
C) It should explain to the customers that they misused the product and try to sell them more of the product.
D) It should discuss the product failure with the customers and then provide them with a full refund of their purchase price.
E) It should ignore the customers' complaints and hope they will tire of calling and writing letters.
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46
A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel Corporation or any other corporations from which it might purchase component parts.The company is trying to prevent
A) their employees from having other jobs.
B) a conflict of interest.
C) trade secrets from being revealed.
D) losing its executives to other organizations.
E) fairness and honesty.
A) their employees from having other jobs.
B) a conflict of interest.
C) trade secrets from being revealed.
D) losing its executives to other organizations.
E) fairness and honesty.
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47
Ranee is a businessperson who works for a successful and admired Fortune 500 company.How often is Ranee likely to encounter ethical issues in the workplace?
A) once or twice during her career
B) about two to three times per year
C) approximately once a month
D) almost every week
E) on a daily basis
A) once or twice during her career
B) about two to three times per year
C) approximately once a month
D) almost every week
E) on a daily basis
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48
At Ledbetter Industries, employees are allowed one-hour lunches, but most stroll back fifteen minutes late every day.The factor affecting the ethical behavior of Ledbetter's employees is _____.
A) individual
B) social
C) opportunity
D) code of ethics
E) whistle-blowing
A) individual
B) social
C) opportunity
D) code of ethics
E) whistle-blowing
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49
Taking credit for others' ideas or work or not meeting one's commitments in a mutual agreement are ethical issues concerning _____.
A) fairness and honesty
B) organizational relationships
C) conflict of interest
D) communications
E) freedom of choice
A) fairness and honesty
B) organizational relationships
C) conflict of interest
D) communications
E) freedom of choice
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50
The ____ factor affecting ethical behavior includes individual knowledge of an issue, personal values, and personal goals.
A) individual
B) social
C) opportunity
D) moral
E) ethical
A) individual
B) social
C) opportunity
D) moral
E) ethical
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51
Publisher's Clearing House has a policy that no employees or their family members are eligible to win the big sweepstakes.This policy was likely implemented to
A) shrink the pool of possible winners, which increases each individual's odds of winning.
B) prevent employees from accepting gifts or bribes from other employees.
C) encourage more magazine sales.
D) avoid an apparent conflict of interest.
E) satisfy the families of Publisher's Clearing House employees.
A) shrink the pool of possible winners, which increases each individual's odds of winning.
B) prevent employees from accepting gifts or bribes from other employees.
C) encourage more magazine sales.
D) avoid an apparent conflict of interest.
E) satisfy the families of Publisher's Clearing House employees.
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52
All of the following are factors that affect the level of ethical behavior in an organization except ______.
A) individual factors
B) social factors
C) opportunity
D) demographic factors
E) moral values
A) individual factors
B) social factors
C) opportunity
D) demographic factors
E) moral values
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53
Mattel, the maker of Barbie dolls, frequently shows television ads aimed at children on Saturday mornings, when many children are known to watch cartoons.Some of these ads mix cartoon-type animation and "real" shots of the dolls so that it is sometimes difficult for even an adult to determine what the doll can or cannot do.This most likely represents
A) a conflict of interest.
B) an ethical problem because children may be deceived about what Barbie can do.
C) an ethical concern for many creditors of Mattel.
D) illegal payoffs, if parents are getting more than they actually know they are paying for.
E) that Mattel employees need better working conditions and higher pay.
A) a conflict of interest.
B) an ethical problem because children may be deceived about what Barbie can do.
C) an ethical concern for many creditors of Mattel.
D) illegal payoffs, if parents are getting more than they actually know they are paying for.
E) that Mattel employees need better working conditions and higher pay.
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54
Ed works in a position where there is very little supervision.In fact, although he considers himself ethical, he figures he could go away for a week without anyone noticing.Which general set of factors is most likely to influence Ed's ethical behavior?
A) individual
B) social
C) moral
D) circumstantial
E) opportunity
A) individual
B) social
C) moral
D) circumstantial
E) opportunity
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55
At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount.Which factor affecting ethical behavior is Victoria's Secret seeking to control?
A) individual
B) social
C) moral
D) circumstantial
E) opportunity
A) individual
B) social
C) moral
D) circumstantial
E) opportunity
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56
Publix, a southeastern grocery store chain, has signs saying that tips are not accepted and employees are all informed of this policy.However, many of the baggers commonly accept tips from customers anyway and they often compare to see who makes the most.The factor affecting the ethical behavior of Publix's employees is _____.
A) individual
B) social
C) opportunity
D) demographic
E) internal code
A) individual
B) social
C) opportunity
D) demographic
E) internal code
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57
When medical research indicated that a high-fiber diet might help reduce one's risk of colon cancer, a few producers of fiber cereals suggested in their advertisements that if you eat fiber cereal, you will not get cancer.This is an example of _____.
A) an unethical organizational relationship
B) a conflict of interest
C) social responsibility
D) unethical communications
E) ethical persuasion
A) an unethical organizational relationship
B) a conflict of interest
C) social responsibility
D) unethical communications
E) ethical persuasion
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58
If a company deals with violations of its ethical codes ____, the opportunity to be unethical will be reduced.
A) leisurely and lightly
B) firmly and consistently
C) on a case-by-case basis
D) quietly and erratically
E) frequently and severely
A) leisurely and lightly
B) firmly and consistently
C) on a case-by-case basis
D) quietly and erratically
E) frequently and severely
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59
For health-related companies such as Weight Watchers, one of the most frequent ethical issues related to communications that they face is
A) deception.
B) providing too much information.
C) seeking FDA approval.
D) experiments on animals.
E) safe packaging.
A) deception.
B) providing too much information.
C) seeking FDA approval.
D) experiments on animals.
E) safe packaging.
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60
Which of the following holds true in the case of bribes?
A) They are unethical.
B) They are ethical only under certain circumstances.
C) They are uncommon in many foreign countries.
D) They are economic returns.
E) They are ethical.
A) They are unethical.
B) They are ethical only under certain circumstances.
C) They are uncommon in many foreign countries.
D) They are economic returns.
E) They are ethical.
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61
Which of the following holds true in the case of social responsibility?
A) It has little or no associated costs.
B) It can be extremely expensive and provides very little benefit to a company.
C) It has become less important as businesses become more competitive.
D) It is generally a crafty scheme to put competitors out of business.
E) It is costly but provides tremendous benefits to society and the business.
A) It has little or no associated costs.
B) It can be extremely expensive and provides very little benefit to a company.
C) It has become less important as businesses become more competitive.
D) It is generally a crafty scheme to put competitors out of business.
E) It is costly but provides tremendous benefits to society and the business.
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62
Tom stormed into the office, exclaiming, "That's the last straw! I've experienced unethical behavior at this company one time too many.I'll be calling the press immediately." It appears that Tom is about to engage in ______.
A) an unethical practice
B) corporate ethics
C) whistling
D) trumpeting
E) whistle-blowing
A) an unethical practice
B) corporate ethics
C) whistling
D) trumpeting
E) whistle-blowing
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63
Which of the following is the most effective way to encourage ethical business behavior?
A) pass government regulations
B) provide guidelines from trade associations
C) include an ethics clause in a labor contract
D) establish and enforce a code of ethics
E) rely on employees to blow the whistle
A) pass government regulations
B) provide guidelines from trade associations
C) include an ethics clause in a labor contract
D) establish and enforce a code of ethics
E) rely on employees to blow the whistle
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64
After consulting his company's code of ethics, Mark is still unsure of whether or not the decision he is about to make is ethical.Which of the following actions would be most appropriate?
A) ask his wife what she would do in this situation
B) calculate the decision's bottom-line impact and do whatever increases profit the most
C) determine whether coworkers, suppliers, and customers would approve of the action
D) go with his gut feeling because Mark considers himself to be an ethical individual
E) avoid making the decision and any other decision with ethical implications
A) ask his wife what she would do in this situation
B) calculate the decision's bottom-line impact and do whatever increases profit the most
C) determine whether coworkers, suppliers, and customers would approve of the action
D) go with his gut feeling because Mark considers himself to be an ethical individual
E) avoid making the decision and any other decision with ethical implications
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65
Which of the following best defines the term Caveat emptor?
A) It is a French term that implies laissez faire.
B) It implies disagreements over peer evaluations.
C) It is a Latin phrase meaning "let the buyer beware."
D) It is a Latin phrase meaning "let the seller beware."
E) It is a Latin phrase meaning "the cave is empty."
A) It is a French term that implies laissez faire.
B) It implies disagreements over peer evaluations.
C) It is a Latin phrase meaning "let the buyer beware."
D) It is a Latin phrase meaning "let the seller beware."
E) It is a Latin phrase meaning "the cave is empty."
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66
Megan Miller is an ethics officer at a large financial institution.She likely performs all of the following duties except
A) coordinating ethical conduct.
B) providing advice to employees when they are uncertain.
C) giving top management advice about their decisions.
D) encouraging all employees to be whistle-blowers.
E) determining the punishment for ethical violations.
A) coordinating ethical conduct.
B) providing advice to employees when they are uncertain.
C) giving top management advice about their decisions.
D) encouraging all employees to be whistle-blowers.
E) determining the punishment for ethical violations.
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67
Which of the following scenarios provides the best example of whistle-blowing?
A) Jonathon fails to meet his sales quota for the month and is reported to the regional manager for special review.
B) Christine tells her husband about illegal environmental dumping she suspects her company is doing.
C) William gives an interview on NBC's Dateline about the opportunities available at his company.
D) Geena speaks to her boss about how uncomfortable she is with the sexual jokes one of her coworkers frequently tells at the office.
E) Marie has grown tired of her company's unsafe practices and reports them to OSHA, a governmental agency that regulates safety.
A) Jonathon fails to meet his sales quota for the month and is reported to the regional manager for special review.
B) Christine tells her husband about illegal environmental dumping she suspects her company is doing.
C) William gives an interview on NBC's Dateline about the opportunities available at his company.
D) Geena speaks to her boss about how uncomfortable she is with the sexual jokes one of her coworkers frequently tells at the office.
E) Marie has grown tired of her company's unsafe practices and reports them to OSHA, a governmental agency that regulates safety.
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68
The human resources manager at Swingline, Inc., a manufacturer of office staplers, wants to encourage a more ethical climate in the organization.A likely way for Swingline to do this is to
A) make certain that Swingline has a company code of ethics that is enforced.
B) add an ethics department whose job is to constantly watch employees to be certain they behave.
C) develop a system of security cameras, telephone monitoring, and one-way mirrors to be certain that employees behave appropriately.
D) avoid any mention of ethics to employees so that they will not think unethical thoughts.
E) do none of the above.All of these practices are illegal because they take away an employee's constitutional right of free choice.
A) make certain that Swingline has a company code of ethics that is enforced.
B) add an ethics department whose job is to constantly watch employees to be certain they behave.
C) develop a system of security cameras, telephone monitoring, and one-way mirrors to be certain that employees behave appropriately.
D) avoid any mention of ethics to employees so that they will not think unethical thoughts.
E) do none of the above.All of these practices are illegal because they take away an employee's constitutional right of free choice.
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69
The recognition that business activities affect society and the consideration of that impact when making business decisions is referred to as _____.
A) business ethics
B) corporate ethics
C) code of ethics
D) community responsibility
E) social responsibility
A) business ethics
B) corporate ethics
C) code of ethics
D) community responsibility
E) social responsibility
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70
As a result of the Bhopal incident, in which a toxic gas leak killed thousands of people, officials at Union Carbide have dedicated themselves to operating their business ethically.Ways in which the company can encourage ethical behavior include all of the following except
A) formalizing a corporate code of ethics.
B) encouraging whistle-blowing.
C) holding ethics training sessions.
D) requiring that ethical behavior be profitable.
E) promoting open decision making.
A) formalizing a corporate code of ethics.
B) encouraging whistle-blowing.
C) holding ethics training sessions.
D) requiring that ethical behavior be profitable.
E) promoting open decision making.
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71
Wal-Mart expects its code of ethics to provide all of the following benefits except
A) creating an outline for ethical policies and standards.
B) encouraging employees to behave ethically.
C) communicating the company's expectations to the employees.
D) describing what to do in every ethical situation.
E) detailing the punishment that will be given for an ethical breech.
A) creating an outline for ethical policies and standards.
B) encouraging employees to behave ethically.
C) communicating the company's expectations to the employees.
D) describing what to do in every ethical situation.
E) detailing the punishment that will be given for an ethical breech.
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72
What is probably the most effective way for a company to encourage ethical behavior?
A) hire employees who are ethical and in agreement with the company's views
B) have ethics training sessions for interested employees
C) threaten employees with immediate termination for unethical behavior
D) post signs discouraging sexual harassment and discrimination
E) develop and enforce a written code of ethics for the organization
A) hire employees who are ethical and in agreement with the company's views
B) have ethics training sessions for interested employees
C) threaten employees with immediate termination for unethical behavior
D) post signs discouraging sexual harassment and discrimination
E) develop and enforce a written code of ethics for the organization
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73
A whistle-blower is a person who
A) announces the beginning and end of a work shift.
B) praises his or her own accomplishments.
C) does public relations work for a company.
D) accepts responsibility when a company is in trouble with the government.
E) reports illegal or unethical conduct within his or her organization.
A) announces the beginning and end of a work shift.
B) praises his or her own accomplishments.
C) does public relations work for a company.
D) accepts responsibility when a company is in trouble with the government.
E) reports illegal or unethical conduct within his or her organization.
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74
Rose Martinez walked into her office and found a large, extravagant bouquet on her desk.Before she had time to read the card, her secretary said it was from Mr.Tanner at Zero Corporation.The secretary knew Mr.Tanner was trying to negotiate a sales deal with the company.Thus, she remarked that the beautiful flowers should help Ms.Martinez make her decision.Although Ms.Martinez did not know how to respond to Mr.Tanner's gift, she thought an answer might be in her company's _____.
A) sales procedures
B) sales manual
C) employee handbook
D) code of ethics
E) sales training tapes
A) sales procedures
B) sales manual
C) employee handbook
D) code of ethics
E) sales training tapes
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75
Kenneth worked in the steel industry in the early 1900s.Which most likely describes the amount of time Kenneth worked per week?
A) He was lucky to have the job at all and probably only workrd twenty hours per week.
B) He shared his job with another individual and worked thirty hours per week.
C) He worked a standard week of forty hours.
D) He worked over sixty hours a week.
E) He spent about sixteen hours a day, six days a week at the factory.
A) He was lucky to have the job at all and probably only workrd twenty hours per week.
B) He shared his job with another individual and worked thirty hours per week.
C) He worked a standard week of forty hours.
D) He worked over sixty hours a week.
E) He spent about sixteen hours a day, six days a week at the factory.
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76
Certain executives were aware of the financial difficulties of WorldCom.What action might they have taken to help the owners, employees, and communities involved?
A) whistle-blowing
B) selling their shares of WorldCom
C) leaving the company
D) transferring to a more ethical division
E) denying their knowledge of the company's problems
A) whistle-blowing
B) selling their shares of WorldCom
C) leaving the company
D) transferring to a more ethical division
E) denying their knowledge of the company's problems
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77
Some Enron executives were aware of the financial problems the company was facing and yet failed to reveal this information to the public.These actions taken by Enron executives were
A) moral.
B) normal.
C) in the best interests of the shareholders.
D) unethical.
E) in the best interests of the employees.
A) moral.
B) normal.
C) in the best interests of the shareholders.
D) unethical.
E) in the best interests of the employees.
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78
Six of the most important federal laws passed between 1887 and 1914 supported which of the following?
A) foreign trade
B) increased production
C) competition
D) elimination of unions
E) more social responsibility
A) foreign trade
B) increased production
C) competition
D) elimination of unions
E) more social responsibility
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79
Which of the following examples least represents the definition of social responsibility?
A) Home Depot provides resources and volunteers for Habitat for Humanity.
B) GE supports food banks and helps renovate homeless shelters.
C) Military members pledge a portion of their salary to the United Way.
D) Avon donates a portion of its profits to breast cancer research.
E) AT&T supports education, health, and the environment through donations and volunteers.
A) Home Depot provides resources and volunteers for Habitat for Humanity.
B) GE supports food banks and helps renovate homeless shelters.
C) Military members pledge a portion of their salary to the United Way.
D) Avon donates a portion of its profits to breast cancer research.
E) AT&T supports education, health, and the environment through donations and volunteers.
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80
The American Apparel Manufacturers Association exerts pressure on its members to comply with the ethical standards of the industry and provides information and benefits for textile companies.This company is an example of a(n) _____.
A) regulatory agency
B) government agency
C) trade association
D) industry organization
E) membership club
A) regulatory agency
B) government agency
C) trade association
D) industry organization
E) membership club
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